I do not understand why all of this was a bad thing. Square tried to control both sides of the counter and it failed in one of them. There is so much that needs to be done on the seller (merchant) and Square understood that and pivoted away.

What makes all other competitors so much better than Square? The numbers game is the same, Amazons Local Register is a tremendous disaster despite trying to to undercut Square with a lower rate..

Square taps into a huge pool of small businesses that one would ever dream of. Apple Pay would never succeed without the support of all these small businesses, thats why initial reports show its a failure as well.

Only time will tell but if you ask me the moves Square is doing show they realize their failures and proceed with what works instead.